UPDATE: D.A. Davidson & Co. Initiates Coverage On F5 Networks, Inc.

Kelleher says the company's "secret sauce" is its Traffic Management Operating System, which he noted is the foundation of F5's product suite. Kelleher explained this is important because it allows the company to introduce new functionality in adjacent markets to its customer base, which over time expands the company's total addressable market.

As an additional point, Kelleher said F5's "industry-leading" security offerings should continue to support top-line growth, while it leverages its numerous partnerships to sustain a "significant" competitive advantage over its rivals.

Shares of F5 Networks were up less than one percent in the pre-market.